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Juan Garcia, USDA’s Farm Service Agency administrator, on the drought hitting the Midwest, declaring a “disaster” in 26 states and how the gover...
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Four years.
Juan Garcia the administrator of the USDA's Farm Service Agency we're pleased to have you.
On our show this afternoon wants and it disaster declared in 26 states as we sets up what does that classification enable the government and to deal.
Thank you lord for having me today.
The new and improved disaster -- declaration process provide swifter.
Assistance to our farmers and ranchers that have been affected by drought.
It provides for emergency loans for our -- too far from producers.
Four of their losses.
They can use these loans to refinance -- dad or for operating expenses now the secretary did announce a reduction.
Of the look of the emergency loan rate.
From three and three quarters percent to two and a quarter percent had a which helps out of course now -- -- with a total cost to the government.
-- that as far as the total costs you know we we will provide.
The in the ability for for those farmers to.
To obtain loans and and it it just all depends on on how much of those how many of those producers.
Participate on that.
Is it in the millions of dollars because I've heard a figure four million dollars in the reason why wanna talk about the costs one is because as you know the climate these days for government spending.
Is tough.
We just got the federal budget deficit figures which is upwards of a trillion dollars and I'm try to do -- Gauge whether or not this is and meaningful amount of money that would you know go against that budget deficit that we're struggling with right now.
Well of course -- USDA is is very committed to add to it took to the budget reductions.
And we -- provide the of the fund and that congress.
Approved for us to be able to to work with these producers and -- -- their loans.
So it it does -- as I mentioned -- all -- -- On on the serious none of the losses and how many of those producer supply.
So we Anderson -- about 40% of the US corn crop was in good or excellent condition as of July 8 down from 48%.
A week earlier now will -- government loans and penalty reductions -- be able to keep the grocery store cost of corn and corn products eating beef.
-- -- -- -- -- Gallon or at least from rising spiking too high.
Well.
As as you USDA forecast that this -- that.
The of the corn yields.
-- will be reduced by around twenty bushels down to a 146 bushels per acre.
It's really.
A little early to tell what kind of economic.
Situation we're going to be hand.
And some situations of rainfall this received the crop may recover.
So we will see in the next coming months she knows if if it's gonna affect feed costs.
You know for a poultry producers for -- livestock producers.
And and and even at the grocery store OK Juan Garcia thank you for sharing the details of this plan a couple of except per hour -- --
